Have you ever heard the phrase, "Don’t believe everything you hear?" That’s especially true if you’re thinking about buying or selling a home in today’s housing market. There’s a lot of misinformation out there, and right now, having a trustworthy source of information is more important than ever.

If you partner with a knowledgeable real estate agent, they can help clear up common misconceptions and provide reassurance by backing up their advice with research-driven facts. Here are just a few myths they can help debunk:

1. I’ll Get a Better Deal Once Prices Crash

If you’ve heard that home prices are going to come crashing down, it’s time to take a closer look at what’s really happening. While prices vary by local market, the data shows that a crash isn’t on the horizon. Back in 2008, there was a dramatic oversupply of homes, leading to a significant drop in prices. Today, we’re facing an entirely different scenario—there’s an undersupply of homes for sale, which is keeping prices stable (see chart below).

So, if you’re waiting for a market crash to score a deal, you might be waiting in vain. The data shows that waiting isn’t going to pay off the way you’d hoped. Instead, it’s better to focus on your current needs and opportunities.

2. I Won’t Be Able to Find Anything to Buy

Worried about finding the right home if you decide to move? You probably haven’t spoken with an expert real estate agent recently. Throughout this year, the supply of homes for sale has grown. Data from Realtor.com reveals that while there are still fewer homes on the market than in a more typical year like 2019, inventory is above where it was at this time last year (see graph below).

If you’re haunted by memories of record-low inventory during the pandemic, it’s time to let go of that concern. While the market isn’t back to pre-pandemic normal yet, inventory is moving in a healthier direction. As your options improve, you can shed this outdated myth. Finding a home to buy is becoming more feasible, so don’t let old fears hold you back.

3. I Have to Wait Until I Have Enough for a 20% Down Payment

Many people still believe you need a 20% down payment to buy a home. To show just how widespread this myth is, Fannie Mae reports:

“Approximately 90% of consumers overstate or don’t know the minimum required down payment for a typical mortgage.”

And if you look at data from the National Association of Realtors (NAR), you’ll see that the typical homebuyer isn’t putting down nearly as much as you might expect (see graph below).

First-time homebuyers are typically putting down just 6%, far less than the 20% many think they need. If you’re focused on the fact that repeat buyers are putting down closer to 20%, remember that they’re often leveraging equity built up in their current homes to make a larger down payment on their next one.

This underscores the point: you don’t need a 20% down payment unless it’s required by your loan type or lender. Many buyers put down far less. Depending on the type of loan, you might only need to put down 3.5% or even 0%. If you’re buying your first home, your down payment might be significantly smaller than you think.

An Agent’s Role in Fighting Misconceptions

If you’ve put your plans on hold because of these myths, it’s time to talk to a trusted real estate agent. An expert can provide you with the data and facts, just like the ones mentioned here, to help break through any misconceptions that might be holding you back.

Bottom Line

If you have questions about what you’re hearing or reading about the housing market, connect with a real estate agent. You deserve to have someone you can trust to give you the facts and guide you through the process.

If you're making a move, reach out, and lets chat. Happy to brainstorm and come up with a solution that gets you a tangible and actionable plan that fits your unique situation.

Best,

Justin H Gazabat
Broker | PNW, Seattle, Ballard, East Side
Your Friendly Seattle Neighborhood Real Estate Professional.
www.JustinGazabat.com

PS: If anyone in your social or work circles considering a move, just send Me an intro text or email with their best contact info, make sure everyone is CC’d and I’ll take care of the rest! I promise to take great care of them, serve them well, make you look good, plus help them get great results.

*(Information from our friends at Fannie Mae, NAR, Realtor. com, the Census, Keeping Current Matters, Attom, et al.)